Tax Rankings by State
Connecticut has the second highest tax rate in the U.S. New York ranks third. Connecticut’s sales tax rate of 6.35% ranks 12th highest in the country. The U.S. average sales tax rate is 5.22%. Although Connecticut’s tax rate is high compared to the average, it does not levy local sales taxes. Hawaii, Vermont, and California round out the top five highest taxed states.
The ten highest taxed states are:
- New York
- Connecticut
- Hawaii
- Vermont
- California
- New Jersey
- Illinois
- Virginia
- Delaware
- Maine
Property taxes are also high in some states. Tennessee has the highest combined state and local sales tax rate at 9.55%. Among states with income tax, North Dakota has the lowest marginal income tax rate at 2.9%. Sales taxes and property taxes also contribute to tax burden.
Connecticut ranks 47th on the State Business Tax Climate Index. The bulk of Connecticut’s tax revenue goes to funding state and local governments. The city of Torrington has the highest property tax rate in Connecticut.
Individual Income Tax Rates
California has the highest individual income tax rates, ranging from 1% to 13.30% based on income. Maine has the highest starting rate of 5.8% for the lowest bracket.
New York, Connecticut, and Hawaii rank among the top three for highest tax burdens overall. They impose income, sales, property and other taxes.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no income tax at all. Alaska, Delaware, Montana, New Hampshire and Oregon have no state sales tax.
Connecticut’s Tax Position
Connecticut ranked as the state with the second highest tax rate with New York placing behind in the third spot and New Jersey coming last on the top 10 list. The state’s average effective property tax rate is 2.14%, which ranks as the third-highest of any state in the U.S. Connecticut’s total state and local sales tax rate ranks 33rd in the country.
New York, Connecticut, and Hawaii rank among the top three states with the highest tax burdens. To fund public services and infrastructure in densely populated areas, these states often rely on higher tax rates.
Taxes in New York are higher than Connecticut’s for every income group except the poorest 20%, who pay more in state and local taxes in Connecticut than in New York. Cheyenne, Wyoming has the lowest tax rates overall, with an average 9.7% rate for lower-income families.
The deadline to file Connecticut state taxes is April 15. The state also has an online portal for filing and paying taxes online. Taxpayers can also visit the state’s Taxpayer Service Center. Highly valuable tax record for Connecticut is the U.S. Direct Tax for 1798.